DIT AMCON Distributing Co

AMCON Distributing Company (“AMCON”) (NYSE MKT:DIT), an Omaha, Nebraska based consumer products company is pleased to announce fully diluted earnings per share of $1.52 on net income available to common shareholders of $1.0 million for the fiscal quarter ended December 31, 2016.

“We are pleased with our start to fiscal 2017. Our business strategy is centered on customer service and reliability which enables us to compete in a challenging environment. We expect that we will enter into a period of sustained capital expenditures in order to maintain and enhance our competitive position in light of current operating conditions,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “As a leader in the Convenience Distribution industry, AMCON is actively seeking acquisitions in the convenience distribution and foodservice industries that can benefit from our extensive platform of services.”

For the first fiscal quarter, the Wholesale Distribution Segment reported revenues of $303.9 million and operating income of $4.0 million. Our Retail Health Food Segment reported revenues of $6.2 million and an operating loss of $0.3 million.

“One of our goals is to continue to develop our foodservice capabilities. Foodservice category sales are growing industry wide and we are among the leaders in program development,” said Kathleen M. Evans, President of AMCON’s Wholesale Distribution Segment.

“We were pleased with the opening of our new flagship Chamberlin’s store in Orlando. This new store opening was done contemporaneously with a brand reimaging and social media campaign focused on our historical strengths and differentiating factors. The growth in the retail health food sector has led to greater competition from new market entrants and we are working diligently to upgrade our facilities and offerings to meet the competitive pressure,” said Clifford Ginn, President of AMCON’s Retail Health Food Segment.

“We closed the December 31, 2016 quarter with shareholders’ equity of $66.7 million and consolidated debt of $13.1 million,” said Andrew C. Plummer, AMCON’s Chief Financial Officer. Plummer added, “We continue to develop cutting edge technology products for our internal and external customers in a rapidly changing environment. Investing in our facilities and transportation equipment requires considerable commitment and capital. We continue to actively manage our working capital and liquidity which affords us the ability to invest in our businesses for the long-term which benefits our customers.”

AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and chilled foods, and health and beauty care products with locations in Illinois, Missouri, Nebraska, North Dakota, South Dakota and Tennessee. AMCON also operates sixteen (16) health and natural product retail stores in the Midwest and Florida. The retail stores operate under the names Chamberlin's Market & Cafe www.chamberlins.com and Akin’s Natural Foods Market www.akins.com.

This news release contains forward-looking statements that are subject to risks and uncertainties and which reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. A number of factors could affect the future results of the Company and could cause those results to differ materially from those expressed in the Company's forward-looking statements including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs and the other factors described under Item 1.A. of the Company’s Annual Report on Form 10-K. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements.

Visit AMCON Distributing Company's web site at: www.amcon.com

   

AMCON Distributing Company and SubsidiariesCondensed Consolidated Balance SheetsDecember 31, 2016 and September 30, 2016

  December September 2016 2016 (Unaudited) ASSETS Current assets: Cash $ 331,420 $ 605,380

Accounts receivable, less allowance for doubtful accounts of $0.7 million at December 2016 and $0.7 million at September 2016

26,427,248 30,033,104 Inventories, net 49,731,837 48,404,882 Deferred income taxes 1,088,148 1,441,919 Income taxes receivable 136,825 164,959 Prepaid and other current assets   6,638,196     8,608,049   Total current assets 84,353,674 89,258,293   Property and equipment, net 12,375,237 12,607,877 Goodwill 6,349,827 6,349,827 Other intangible assets, net 3,693,061 3,759,311 Other assets   264,008     288,082   $ 107,035,807   $ 112,263,390   LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 15,819,728 $ 18,164,983 Accrued expenses 5,657,934 6,792,884 Accrued wages, salaries and bonuses 1,656,895 3,580,996 Current maturities of long-term debt   365,243     362,495   Total current liabilities 23,499,800 28,901,358   Credit facility 9,804,445 10,537,226 Deferred income taxes 4,074,770 4,021,569 Long-term debt, less current maturities 2,929,414 3,021,824 Other long-term liabilities 31,134 30,815   Shareholders’ equity: Preferred stock, $.01 par value, 1,000,000 shares authorized — —

Common stock, $.01 par value, 3,000,000 shares authorized, 678,938 shares outstanding and issued at December 2016 and 677,057 shares outstanding and issued at September 2016

8,314 8,184 Additional paid-in capital 20,784,552 19,525,554 Retained earnings 59,417,819 58,693,241 Treasury stock at cost   (13,514,441 )   (12,476,381 ) Total shareholders’ equity   66,696,244     65,750,598   $ 107,035,807   $ 112,263,390    

   

AMCON Distributing Company and SubsidiariesCondensed Consolidated Unaudited Statements of Operationsfor the three months ended December 31, 2016 and 2015

  For the three months ended December 2016 2015 Sales (including excise taxes of $91.0 million and $97.3 million, respectively) $ 310,104,229 $ 322,008,249 Cost of sales   291,788,243     303,046,345   Gross profit   18,315,986     18,961,904   Selling, general and administrative expenses 15,698,319 15,845,134 Depreciation and amortization   526,433     566,949     16,224,752     16,412,083   Operating income   2,091,234     2,549,821     Other expense (income): Interest expense 217,543 212,454 Other (income), net   (5,773 )   (27,255 )   211,770     185,199   Income from operations before income tax expense 1,879,464 2,364,622 Income tax expense   833,000     1,009,000   Net income 1,046,464 1,355,622 Preferred stock dividend requirements   —     (49,177 ) Net income available to common shareholders $ 1,046,464   $ 1,306,445     Basic earnings per share available to common shareholders $ 1.54 $ 2.09 Diluted earnings per share available to common shareholders $ 1.52 $ 1.85   Basic weighted average shares outstanding 681,668 625,356 Diluted weighted average shares outstanding 688,676 733,484   Dividends declared and paid per common share $ 0.18 $ 0.18  

   

AMCON Distributing Company and SubsidiariesCondensed Consolidated Unaudited Statements of Cash Flowsfor the three months ended December 31, 2016 and 2015

  December December 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 1,046,464 $ 1,355,622 Adjustments to reconcile net income from operations to net cash flows from operating activities: Depreciation 460,183 475,699 Amortization 66,250 91,250 Gain on sale of property and equipment (23,559 ) (11,441 ) Equity-based compensation 459,278 349,522 Deferred income taxes 406,972 419,524 Provision for losses on doubtful accounts 183 8,000 Provision for losses on inventory obsolescence 58,776 44,903 Other 319 (2,011 ) Changes in assets and liabilities: Accounts receivable 3,605,673 448,271 Inventories (1,385,731 ) 17,044,395 Prepaid and other current assets 1,969,853 (4,683,879 ) Other assets 24,074 37,392 Accounts payable (2,179,939 ) (1,268,360 ) Accrued expenses and accrued wages, salaries and bonuses (2,370,918 ) (2,046,917 ) Income taxes receivable   28,134     454,861   Net cash flows from operating activities   2,166,012     12,716,831     CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (400,778 ) (361,565 ) Proceeds from sales of property and equipment   31,478     14,000   Net cash flows from investing activities   (369,300 )   (347,565 )   CASH FLOWS FROM FINANCING ACTIVITIES: Net payments on bank credit agreements (732,781 ) (9,752,570 ) Principal payments on long-term debt (89,662 ) (86,998 ) Repurchase of common stock (1,038,060 ) (2,154,670 ) Dividends paid on convertible preferred stock — (49,177 ) Dividends on common stock (127,713 ) (119,514 ) Withholdings on the exercise of equity-based awards   (82,456 )   (81,406 ) Net cash flows from financing activities   (2,070,672 )   (12,244,335 ) Net change in cash (273,960 ) 124,931 Cash, beginning of period   605,380     219,536   Cash, end of period $ 331,420   $ 344,467     Supplemental disclosure of cash flow information: Cash paid during the period for interest $ 223,802 $ 225,512 Cash paid during the period for income taxes 397,894 134,615   Supplemental disclosure of non-cash information: Equipment acquisitions classified as accounts payable 2,128 22,351 Dividends payable 194,173 178,614 Issuance of common stock in connection with the vesting and exercise of equity-based awards. 1,262,763 1,174,981  

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AMCON Distributing CompanyChristopher H. Atayan, 402-331-3727